Cay Hasselmann wrote an interesting blog post about data standards in investment banking. In particular, he thinks about why there tend to be more standards in the public sector than in the private sector. He says it's about “money and motivation. In governments standards are vital as they often define the reason for doing something. In the commercial sector standards are used as a means to a goal and only seen as a requirement if a public body forces them to be used. Also in public service there is a much higher tendency to pay for standards then in the private sector, unless the standard is included in the product cost for a software (this is why you will find a lot of vendors on the standards committees).”
I agree commercial organizations often evaluate standards according to some single end, rather than appreciating the systemic value of standards. Part of our job as leaders in the standards movement is to get people to appreciate the role of standards as business infrastructure. The ability to share data is a vital prerequisite for doing business, not a one-off project with a discrete, one-time payoff.
I also agree the role of regulators in mandating standards is significant, especially in the investment industry. I'd add that regulators play an important role in encouraging standards in sectors where making a practice mandatory may not be necessary.
I'm not sure about Cay's point on the public sector appetite for paying for standards. I guess where the public sector is the main paymaster, agencies have a clear interest in funding standards because they stand to recoup the costs directly. It's less clear in mainstream commerce who should pay for standards development, promotion or implementation.
Or is it? I think there's a kind of myopia affecting some sectors. Any business domain today is defined by its inter-dependencies. There's no such thing as an isolated business – not, at any rate, an isolated business with a future. Whatever line of work you're in, you're part of an ecosystem. If you don't recognize that reality through cooperation around data standards, you fade out of the picture. If enough current players do the same, then a new generation – with greater self-awareness and environmental savvy – will move in on your niche. And eat your lunch.
The community pays for its standards, because the community benefits. EA Voices
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